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Bill > HR5240


US HR5240

US HR5240
To amend the Internal Revenue Code of 1986 to make the look-thru rule for related controlled foreign corporations permanent.


summary

Introduced
11/21/2019
In Committee
11/21/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To amend the Internal Revenue Code of 1986 to make the look-thru rule for related controlled foreign corporations permanent. This bill amends the Internal Revenue Code to make permanent the tax rule exempting dividends, interest, rents, and royalties received or accrued from certain controlled foreign corporations by a related entity from treatment as foreign holding company income (thus permitting tax deferral of such income).

AI Summary

This bill amends the Internal Revenue Code to make permanent the "look-thru" rule, which exempts dividends, interest, rents, and royalties received or accrued from certain controlled foreign corporations by a related entity from being treated as foreign holding company income. This allows for the tax deferral of such income, rather than having it subject to immediate taxation. The amendment applies to taxable years of foreign corporations beginning after December 31, 2019, and to taxable years of U.S. shareholders that align with those foreign corporation taxable years.

Committee Categories

Budget and Finance

Sponsors (15)

Last Action

Referred to the House Committee on Ways and Means. (on 11/21/2019)

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